Correlation Between Tri Continental and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Tri Continental and Crescent Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tri Continental and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Continental Closed and Crescent Capital BDC, you can compare the effects of market volatilities on Tri Continental and Crescent Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tri Continental with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Continental and Crescent Capital.
Diversification Opportunities for Tri Continental and Crescent Capital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tri and Crescent is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tri Continental Closed and Crescent Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Capital BDC and Tri Continental is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tri Continental Closed are associated (or correlated) with Crescent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Capital BDC has no effect on the direction of Tri Continental i.e., Tri Continental and Crescent Capital go up and down completely randomly.
Pair Corralation between Tri Continental and Crescent Capital
Allowing for the 90-day total investment horizon Tri Continental Closed is expected to generate 0.36 times more return on investment than Crescent Capital. However, Tri Continental Closed is 2.76 times less risky than Crescent Capital. It trades about 0.1 of its potential returns per unit of risk. Crescent Capital BDC is currently generating about -0.07 per unit of risk. If you would invest 3,320 in Tri Continental Closed on August 30, 2025 and sell it today you would earn a total of 114.00 from holding Tri Continental Closed or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tri Continental Closed vs. Crescent Capital BDC
Performance |
| Timeline |
| Tri Continental Closed |
| Crescent Capital BDC |
Tri Continental and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Continental and Crescent Capital
The main advantage of trading using opposite Tri Continental and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Continental position performs unexpectedly, Crescent Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Crescent Capital will offset losses from the drop in Crescent Capital's long position.| Tri Continental vs. E Home Household Service | Tri Continental vs. Energold Drilling Corp | Tri Continental vs. Video Display | Tri Continental vs. Darden Restaurants |
| Crescent Capital vs. Four Seasons Education | Crescent Capital vs. ITT Educational Services | Crescent Capital vs. Tyson Foods | Crescent Capital vs. Ausnutria Dairy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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